Saudi Arabia inaction on oil prices serious mistake: Iran official

A senior Iranian official says it will be a “serious mistake” by Saudi Arabia not to work to stop the plunge in global oil prices.

“If Saudi [Arabia] does not help prevent the decrease in oil price ... this is a serious mistake that will have a negative result on all countries in the region,” Iranian Deputy Foreign Minister for Arab and African Affairs Hossein Amir-Abdollahian told Reuters in an exclusive interview on Wednesday evening.

Oil prices have plunged about 50 percent since June over increased supplies by certain countries such as Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries (OPEC), and a lackluster global economic growth.

“There are several reasons for the drop of the price of oil but Saudi Arabia can take a step to have a productive role in this situation,” Amir-Abdollahian added.

The Iranian official further noted that Tehran will hold talks with Riyadh on oil prices in the near future. He, however, did not provide any details on the potential time of the discussions.

On Tuesday, Iranian Foreign Minister Mohammad Javad Zarif criticized the oil-producing countries of the Middle East for failing to control plummeting crude prices.

“It is regrettable that regional countries are not cooperating on the falling oil prices and its negative implications,” Zarif said in a meeting with Iraqi Parliament Speaker Salim al-Jabouri in the Iranian capital, Tehran.

Saudi Arabia has said that OPEC will not cut oil production even if oil prices fall to USD 20 a barrel.

“Whether it goes down to $20 a barrel, $40, $50, $60, it is irrelevant,” Saudi Oil Minister Ali al-Nuaimi told weekly magazine, The Middle East Economic Survey (MEES), on December 24.